What is EMV?

1
What is EMV?

• A joint effort between Europay, MasterCard and
  Visa
• It is a security framework that defines the
  payment interaction at the physical, electrical,
  data and application levels between the chip
  cards and the payment device. These interactions
  are often referred to as EMV Type Level 1 and 2
  requirements.

2
EMV Fundamentals

• How does EMV Protect against Duplicate Card
  Fraud?
• If an EMV Card is presented at an EMV Terminal,
  the terminal forces it to be inserted.
• Once card is inserted, PAN and Dynamic CVV are
  presented to be used in authorization request.
• This Dynamic CVV (changes for each transaction)
  is validated against what is expected at the
  host.
• Result -gt PAN is static yet data changes on each
  transaction!

• What is EMV?
• Global Standard for the implementation of chip
  cards for the purpose of facilitating an
  electronic payments transaction
• Born out of transit payment programs based in
  Europe
• An effective technology to protect against
  duplicate card fraud

• EMV is not
• Chip and PIN PIN as a cardholder validation
  method is only one implementation option of EMV
• A Silver Bullet for PCI Compliance PAN data is
  still presented in the clear and valuable for
  card not present transactions
• Cure All for Chargebacks The programs put in
  place will help with duplicate card fraud
  chargebacks, but will not impact others

3
EMV worldwide

• The U.S. is the laggard in the global adoption of
  EMV payment technology

13.3 of cards71.1 of terminals
80.6 of cards93.8 of terminals
25.6 of cards49.5 of terminals
38 of cards80 of terminals
20.2 of cards66.4 of terminals
4
Consolidated EMV Timeline

• All Brands (Visa, MC, Amex, Disc) mandated
  processor compliance in April 2013
• Liability shift (while defined uniquely) is Oct.
  2015.
• Liability shift for Automated Fuel Dispensers is
  10/17
• Incentives
• Visa allows for merchants to skip submission of
  ROC if 75 of transactions are initiated from a
  dual interface terminal
• MC allows for ACD relief of either 50 or 100
  if 75 or 95 of transactions are initiated
  through dual interface terminals.
• AMEX allows for merchants to skip submission of
  ROC if 75 of transactions are initiated from a
  dual interface terminal